Posts by: Peter C
"SQRT(260)" multiple factor in "WMT 10 Day Volatility" calculation
Would you please let me know why you include the "SQRT(260)" multiple factor in each "WMT 10 Day Volatility" and "S&P 500 10-Day Volatility" calculation? Does the "260" mean "260 Trading Days and assuming No Holidays, 5 Trading Days * 52 Weeks per Year?" Thank you very much in advance for your ... Read More
Would you please let me know why you include the "SQRT(260)" multiple factor in each "WMT 10 Day Volatility" and "S&P 500 10-Day Volatility" calculation? Does the "260" mean "260 Trading Days and assuming No Holidays, 5 Trading Days * 52 Weeks per Year?" Thank you very much in advance for your ... Read More
VLOOK and MATCH
Good afternoon. => I just finished the VLOOK and MATCH self-study module. => I want to make sure that I know how to apply them, VLOOK, MATCH and OFFSET functions, => So, I used the data provided in the course to try to display the Closing Stock Price in a descending order with corresponding Trading... Read More
Good afternoon. => I just finished the VLOOK and MATCH self-study module. => I want to make sure that I know how to apply them, VLOOK, MATCH and OFFSET functions, => So, I used the data provided in the course to try to display the Closing Stock Price in a descending order with corresponding Trading... Read More
Following up to my (Peter) question RE: Complex LBO Modeling Enhancements - Mezzanine / Warrants Holder Investor Returns
A follow-up to my previous question, it just occurred to me : Did you mean ==> if the warrants conversion right is exercised, then the annual Cash Flow prior to the Exit Year will be = Common Dividends Received * E102 (Equity due to Warrants) + Mezzanine Notes - Cash Interest; and ==> Exit Y... Read More
A follow-up to my previous question, it just occurred to me : Did you mean ==> if the warrants conversion right is exercised, then the annual Cash Flow prior to the Exit Year will be = Common Dividends Received * E102 (Equity due to Warrants) + Mezzanine Notes - Cash Interest; and ==> Exit Y... Read More
Complex LBO Modeling Enhancements - Mezzanine / Warrant Holder Investment Return (with PIK and Warrants)
I am confused by your comment re: "if warrants are converted..." ==> Does it mean that If conversion right is exercised and warrants are converted to equity interest based upon the conversion ratio, my Total Equity Interest will then be = (1) % of equity due to warrants conversion to equity inte... Read More
I am confused by your comment re: "if warrants are converted..." ==> Does it mean that If conversion right is exercised and warrants are converted to equity interest based upon the conversion ratio, my Total Equity Interest will then be = (1) % of equity due to warrants conversion to equity inte... Read More
What is Happening to "Existing Debt Tranche 1" in the "Debt Sweep" Worksheet, if "Refinance Option 3 - Refinance All-Existing Debt" is selected for Switch Cell "W3" in the LBO Summary?
I have just finished Complex LBO & Enhancements module and encountered this problem below. In the "LBO Summary" worksheet, if the "Refinance Option 3 – Refinance All-Existing Debt Refinanced” is selected for switch cell "W3", I then thought the “Existing Debt – Tranche 1” in the Debt Sw... Read More
I have just finished Complex LBO & Enhancements module and encountered this problem below. In the "LBO Summary" worksheet, if the "Refinance Option 3 – Refinance All-Existing Debt Refinanced” is selected for switch cell "W3", I then thought the “Existing Debt – Tranche 1” in the Debt Sw... Read More
Super-Advanced Merger Modeling - IS
I just finished the "Super-Advanced Merger Modeling IS" module. I have two questions: (1) Line 28, Amortization of Transaction Debt Financing Fees => Since "Transaction Debt Financing Fees" is a financing decision = It does not affect EBITDA => Therefore, it should not be included in the EBITDA... Read More
I just finished the "Super-Advanced Merger Modeling IS" module. I have two questions: (1) Line 28, Amortization of Transaction Debt Financing Fees => Since "Transaction Debt Financing Fees" is a financing decision = It does not affect EBITDA => Therefore, it should not be included in the EBITDA... Read More
LBO Model -LBO Summary 1 Option 7 Shares Outstanding Section Cell Number AA39 - Outstanding Amount at Strike price of $33.00
Per JCP FYE 1/29/2005 (FY 2004) 10-K, page 40, Footnote 15 Stock-Based Compensation, Stock Options sub-section, the table lists Stock Options Outstanding at strike price of $33.00 is "5,668". However, in the video presentation, your input was "5,688", resulting in FDSO under Deal to be "276.128... Read More
Per JCP FYE 1/29/2005 (FY 2004) 10-K, page 40, Footnote 15 Stock-Based Compensation, Stock Options sub-section, the table lists Stock Options Outstanding at strike price of $33.00 is "5,668". However, in the video presentation, your input was "5,688", resulting in FDSO under Deal to be "276.128... Read More
DCF Analysis: Using Tax-Effected EBIT as Perpetuity in the Perpetuity Growth Method (PGM) to calculate Terminal Value
I have recently purchased Packages 3, 4, 5, 6, Private Company Valuation, and Super-Complex M&A LBO Modeling self-study courses to refresh my skill-sets. FYI, I have been an M&A investment banker and senior Corporate Development professional for many years. In my experience with DCF Analysis, t... Read More
I have recently purchased Packages 3, 4, 5, 6, Private Company Valuation, and Super-Complex M&A LBO Modeling self-study courses to refresh my skill-sets. FYI, I have been an M&A investment banker and senior Corporate Development professional for many years. In my experience with DCF Analysis, t... Read More
After checking my old "statistics" and "physics" college textbooks and B-school Finance book, I realized (i.e. I had forgot) that : 1. Volatility is standard deviation of returns; 2. Volatility, or standard deviation is the square root of variamce; 3. The assumption that common option pricing ... After checking my old "statistics" and "physics" college textbooks and B-school Finance book, I realized (i.e. I had forgot) that :
1. Volatility is standard deviation of returns;
2. Volatility, or standard deviation is the square root of variamce;
3. The assumption that common option pricing and volatility models take that stock prices make the so-called Random Walk, i.e. the Brownian Motion => each particular increment of this random walk has variance that is proportional to the time over which the price is moving;
4. Since the daily variance is to be annualized => Hence, SQRT(260)" or the "Rule of 16".
Thx for making me to think about your presentation and calculation in this module. Cheers.
Peter C. Read More